Exhibit 14-1
-Refer to Exhibit 14-1. If an individual is earning $135,000 of gross income and is allowed income exemptions and adjustments in the amount of $12,500, what is this individual's total income tax?

Question

Exhibit 14-1 
-Refer to Exhibit 14-1. If an individual is earning $135,000 of gross income and is allowed income exemptions and adjustments in the amount of $12,500, what is this individual's total income tax?

Quizplus · Accepted Answer

The individual's taxable income is $135,000 - $12,500 = $122,500. Assuming a tax rate of 30% (as implied by the choices), the tax is $122,500 * 0.30 = $36,750.

Exhibit 14-1 -Refer to Exhibit 14-1. If an Individual Is Earning $135,000